Investment target for the infrastructure sector set a Rp6,445 trillion
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Permodalan: Target investasi sektor infrastruktur Rp6.445 triliun
22 July 2024
By Maria Elena
Bisnis, Semarang – The government is aiming for an investment of Rp6,445 trillion for infrastructure development, which includes drinking water infrastructure, during the 2020-2024 period. This plan is detailed in the 2020-2024 National Medium-Term Development Plan (RPJMN).
Financing and Risk Management Directorate General Secretary of the Finance Ministry Ubaidi S. Hamidi mentioned that, from the target, the State Budget (APBN) would only accommodate around 37% or Rp2,385 trillion. On the other hand, Ubaidi said that Rp1,353 trillion was forecasted to be contributed by state-owned enterprises (SOEs) and regional state-owned enterprises (BUMDs).
“Rp2,707 trillion is expected to be contributed by the private sector,” he said during a press tour on Friday (19/7).
The investment required to develop drinking water infrastructure is expected to reach Rp123.5 trillion. From the amount, he explained that the APBN and the regional budget (APBD) would only cover Rp77.9 trillion and Rp15.6 trillion respectively. Meanwhile, the remaining Rp29.9 trillion is expected to be financed by the private sector.
He said that the limited capacity of the APBN would not hinder the development of drinking water infrastructure domestically.
“The government is actively striving to provide basic services, such as the provision of clean water and drinking water,” he stated.
In early July 2024, the Finance Ministry reported that they have supported the person in charge of cooperation projects (PJPK) in implementing four drinking water supply system (SPAM) projects. These projects use the public-private partnership (PPP) scheme to provide drinking water to the public.
The four projects are Umbulan Regional SPAM in East Java, Bandar Lampung City SPAM, West Semarang SPAM, and Pekanbaru City SPAM. He added that the investment value of these projects reached Rp4.6 trillion. These projects are expected to increase household connections to 500,000.
